Jump to content

How do you handle paying charge-off accounts or do you just let them go?


vault22
 Share

Recommended Posts

Sifxpert,

If I call the OC and they say they no longer have the account and it is SOLD, what do I do then?

If it is with the OC how do I negotiate what will be reported on my CR? What am I looking for the TL to state after I have settle on account with OC?

Link to comment
Share on other sites

Guest sifxpert

I very rarely negotiate Tl's. I'm not the one to ask on this. I will tell you though, in order to get them to work with you, they will not even consider anything under an 80% settlement. Since I will never settle anything that high I do not question how the account is reported since most creditors will not report as paid in full regardless of settlement amount.

Link to comment
Share on other sites

What sifxpert isn't telling you is this...its very, very unlikely that you'll be able to settle these accounts for $6000 AND repair your credit. You MIGHT be able to get them to accept less than the full amount (I'd suggest paying sifxpert to help with that) but, they'll probably mark your reports something like "paid as agreed" or "settled". Those kind of marks hurt.

On the other hand, if the debt has been sold, the OC's TLs are not repairable. The good news is those negative do get better with age. The bad news is, you're likely to have a JDB coming at you pretty soon. The good news there is, a JDB might take considerably less than the full amount, but of course you don't want them on your reports at all.

In either case, if you pay less than the full amount, you are supposed to get a 1099c for the balance...in which case you'll have to pay taxes.

Link to comment
Share on other sites

  • 2 weeks later...
You MIGHT be able to get them to accept less than the full amount (I'd suggest paying sifxpert to help with that) but, they'll probably mark your reports something like "paid as agreed" or "settled". Those kind of marks hurt.
I think you might have meant to say "'paid collection' or 'settled'?" 'Paid as Agreed' is a good thing (at least I hope so as all of my never-late positive TLs say 'paid as agreed.' :-)
Link to comment
Share on other sites

I think you might have meant to say "'paid collection' or 'settled'?"

Sorry, I meant if it says "paid as agreed" with lates, or with a note saying something like "settled for less than full amount" then you still get zinged. If you can get them report "paid as agreed" with no lates and nothing else that gets it listed in the "negative" area, then you've done good.

Link to comment
Share on other sites

I generally agree w/ the other posters-

For me, I began by paying the most recent ones first. I tried to pay them PRIOR to CO status, but with one they reported it as a CO AFTER I paid it in full, which has me vexed. But it was a recent late and what not so I do feel better.

I had one "threatening" to charge off if I didn't pay in full (when previously they only wanted me to pay up to date...so I let them bite the dust. Now I'll be dealing with a CA, but oh well. It's my understanding that CO's hurt your credit and I'm not sure a "paid CO" would be much better.

As far as OLD CO's I am wondering if you're dealing with CA's who are holding these accts? If so, attempt a settlement offer-but I'd only try one or two at a time, don't overwhelm yourself. How much is your debt with these CO accts?

Elyse

Link to comment
Share on other sites

  • 3 months later...

My situation is similar to this one. COuld you make a suggestion for a course of conduct.

I have one account that was charged off by the original creditor.

AT&T Universal - (which I am not sure still exists.)

Balance Amount: $782 $782 $782

Monthly Payment: $61

High/Limit: $3,900 $3,900 $3,900

Account Status: Collection Collection Collection

Past Due Amount: $650 $650 $650

Comments: LAST REPORTED DELINQUENCIES: 12/2005=R5,11/2005=R5,10/2005=R4 CHARGED OFF ACCOUNT ACCOUNT CLOSED BY CREDIT GRANTOR LAST REPORTED DELINQUENCIES: 11/2006=R ,10/2006=R CHARGE OFF ACCOUNT CLOSED BY CREDIT GRANTOR CANCELLED BY CREDIT GRANTOR

I have not been contacted by a collection agency.

I would gladly pay the full amount.

Do not want to wake a sleeping dog if there is no point in it.

I have two settled for less than full amount on my report now that I am trying to remove but it's very hard.

Questions:

1. Should I contact AT&T

2. If I contact them what will paying them do the the credit report? Will it help very much? I am hovering at 590 plus and minus now.

3. Should I pay in full or in part and what is the difference of the impact on the report?

About the two settled for less than full amount ... how damaging is that. How much more damaging would three be than two? In other words will it really help that much to pay in full considering that I already have two settled for less than full amount.

My appreciation for your response is offered in advance.

Link to comment
Share on other sites

For me, I began by paying the most recent ones first. I tried to pay them PRIOR to CO status, but with one they reported it as a CO AFTER I paid it in full, which has me vexed. But it was a recent late and what not so I do feel better.

I'd argue that one -- it doesn't meet the "maximum possible accuracy" mandate in the FCRA.

Link to comment
Share on other sites

I generally agree w/ the other posters-

For me, I began by paying the most recent ones first. I tried to pay them PRIOR to CO status, but with one they reported it as a CO AFTER I paid it in full, which has me vexed. But it was a recent late and what not so I do feel better.

Elyse

This post is old I know, but....the same thing happend to me many years ago when I was divorced. I was told that it was reported as a CO because I had settled for less than the full amount and they were reporting the unpaid balance as a loss. I don't know how true that is, but back then I didn't know any better to question it.

Link to comment
Share on other sites

I'd argue that one -- it doesn't meet the "maximum possible accuracy" mandate in the FCRA.

I'm sorry, what does that mean? I've never heard that phrase and does it mean I could dispute the reporting on my credit reports?? As a side note, I was an authorized user--not a joint user but it still reports as a paid charge off on my credit.

Elyse

Link to comment
Share on other sites

This post is old I know, but....the same thing happend to me many years ago when I was divorced. I was told that it was reported as a CO because I had settled for less than the full amount and they were reporting the unpaid balance as a loss. I don't know how true that is, but back then I didn't know any better to question it.

So, you paid it?? What buttholes. I always thought if you paid it PRIOR to CO that they'd have to report it paid, was past due or whatever...dang.

Elyse

Link to comment
Share on other sites

I'm sorry, what does that mean? I've never heard that phrase and does it mean I could dispute the reporting on my credit reports?

Have you read the Fair Credit Reporting Act?

I know it's long, but it's worth it.

"Accuracy of report. Whenever a consumer reporting agency prepares a consumer

report it shall follow reasonable procedures to assure maximum possible accuracy of

the information concerning the individual about whom the report relates."

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.